To good to be true? -- Real estate equity investment

[Andy Park]

Hello!

My family has recently have been notified that we qualify for almost 500k for a real estate equity investment for a house we own. After getting more information, there are zero payments and zero "interest". Only thing is that we have to pay loan origination and closing costs. Additionally, we have to pay back the loan/investment back when we sell the property. We have to pay somewhere between 17-19% of how much the property appreciates. This sounds too good to be true! Are there can catches or pitfalls? If anyone has any experience with working with this and can share their input, that would would be greatly appreciated.

Thank you!

[Ken M.]

Quote from @Andy Park:

Hello!

My family has recently have been notified that we qualify for almost 500k for a real estate equity investment for a house we own. After getting more information, there are zero payments and zero "interest". Only thing is that we have to pay loan origination and closing costs. Additionally, we have to pay back the loan/investment back when we sell the property. We have to pay somewhere between 17-19% of how much the property appreciates. This sounds too good to be true! Are there can catches or pitfalls? If anyone has any experience with working with this and can share their input, that would would be greatly appreciated.

Thank you!

There is a company that has been sued for doing that.
Turns out they required to use them as the realtor at whatever fee they chose and it obligated the sellers for 40 years. 

So ask a couple of questions,
how long does our agreement last
can I use my own agent to sell the property
can I sell the property for whatever I deem it's worth
do I retain ownership of the property without a lien

Then have an attorney review the agreement before you sign (not their attorney, YOUR attorney)